IRS Increases Standard Mileage Rate for Business Use in 2025
The IRS has announced an increase in the standard mileage rate for business use in 2025, a key update that tax professionals should communicate to their clients. Effective January 1, 2025, the mileage rate for business use will increase from 67 cents per mile in 2024 to 70 cents per mile.
This adjustment reflects changes in fuel costs and other vehicle-related expenses, making it essential for tax preparers to ensure their clients are ready to adapt.
Key Details for Tax Professionals
Business Use Rate: The increase to 70 cents per mile applies to all miles driven for business purposes.
Other Rates:
Medical or moving expenses (for active-duty military): 22 cents per mile (unchanged).
Charitable mileage: 14 cents per mile, as mandated by law.
Client Education: Ensure your clients are aware of these updates, especially those who are self-employed or run small businesses, as accurate mileage tracking can significantly impact their deductions.
Tips for Assisting Your Clients
Mileage Logs Matter: Remind clients to maintain detailed and accurate mileage records, including dates, destinations, purposes, and miles driven.
Update Tools: Suggest they review and update any mileage-tracking apps or spreadsheets to reflect the new rate.
Review Reimbursement Policies: For clients with employees, this is an excellent time to revisit and update mileage reimbursement policies.
As a trusted tax advisor, staying ahead of changes like these helps position you as a valuable resource for your clients. By proactively discussing updates to the standard mileage rate, you can ensure they maximize their deductions and remain compliant with IRS regulations.
For further information, read the full press release here.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal tax advice. Advanced Tax Solutions is not liable or responsible for any damages resulting from or related to your use of this information. It is your responsibility to refer to official IRS documentation for information regarding any tax laws or tax information shown here.
